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Shortage of electronic chips takes automobile sales on a bumpy ride

Sequentially, MSIL witnessed a bigger slump of over 22% as it had sold 1,36,500 units in July 2021. 

Published: 02nd September 2021 03:26 AM  |   Last Updated: 02nd September 2021 10:49 AM   |  A+A-

Maruti Suzuki

Maruti Suzuki (File Photo | AP)

Express News Service

NEW DELHI:  Hit hard by supply constraint of electronic components due to the semiconductor shortage situation, leading carmakers —Maruti Suzuki (MSIL), Mahindra & Mahindra (M&M) and Tata Motors — witnessed significant slump in August sales as they are not able to produce enough vehicles.

India’s largest carmaker Maruti Suzuki (MSIL) could sell only 1,05,775 units in the domestic market as against 1,15,325 units sold in the same month last year.

Sequentially, MSIL witnessed a bigger slump of over 22% as it had sold 1,36,500 units in July 2021. 

“Sales volume of the company in August 2021 was affected due to electronic components shortage. The company took all possible measures to limit the adverse impact. While the sales volume in August 2021 was affected due to electronic components shortage, the sales volume in August 2020 was impacted due to Covid-19 related disruptions,” said MSIL.

Mahindra & Mahindra’s auto segment posted overall sales of 30,585 units in August, a fall of 21.5% over July. M&M’s passenger vehicle sales fell 24% over July to 15,973 units in August.

Tata Motors’ also witnessed over 7% M-o-M (Month-on-month) slump in August PV sales at 28,018 units while Nissan India domestic wholesales declined by around 25% MoM to 3,209 vehicles due to shortage of semiconductors. 

“With the start of the festive season, customer sentiments are positive with increasing inflow of bookings, the challenge is on the supply side with shortages and increased lead time of semi-conductors supply impacting the availability of vehicles. We foresee this challenge to continue during the coming months,” Rakesh Srivastava, MD, Nissan Motor India, said.

Going forward, the situation may become from bad to worse for carmakers. A day after Maruti Suzuki announced 60% cut in its September production, Tata Motors on Wednesday said the ongoing chip shortage has forced the company to moderate production and offtake volumes in the coming months.



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